Current Assets / Current Assets
Current assets are assets that can be converted into cash in no more than one year . In the Balance Sheet , current assets are listed in order of liquidity or the length of time it takes to turn into cash .
Accounts Receivable / Accounts Receivable
a collectible amount of money to the customer because the goods or products delivered before the first payment is made .
Inventory / Inventory
Or supplies , which in a typical manufacturing company consists of :
- Raw material
- Work – in-process
- Finished goods
Prepaid Expenses / Prepaid Expenses
Payment has been made for a benefit that has not been obtained by the company . If not paid , the company would have more cash in the bank and the interest benefit .
Fixed Assets / Fixed Assets
Assets used to manufacture , store , or distribute other assets . Fixed assets are recorded at cost , less accumulated depreciation and the resulting decline in the value of assets , except land .
Intangible Assets / Intangible Assets
Assets that do not have a physical form , but has a value or price for the company . Examples of intangible assets are patents , copyrights , intellectual property rights , trademark or exclusive rights in a variety of forms .
Current Liabilities / Debt
Liabilities due and payable within 12 months .
Accounts Payable / Accounts Payable / Accounts Payable
An amount to be paid to suppliers of goods or services as well as a creditor of the company.
Accrued Expenses / Expenses Not Paid
Besides owed to suppliers , the company also owes , on certain days , for salaries and wages , interest on bank loans and bonds , commission lawyers and such . The total of all such arrears , unpaid at the balance sheet date issued , combined in one post Accrued Expenses .
Current Portion of Long – Term Debt / Long Term Debt Maturities
The debt portion is usually the annual debt service , or if the form of monthly debt repayments , then the note is the accumulation of the monthly installments over the next year .
Long – Term Liabilities / Long-Term Debt
All of the company’s debt maturities greater than one year included in this post . Some types of debt that makes this post is bank debt , bonds ( bonds) , tax liabilities (deferred tax) , pension employees , etc. .
Equity / Equity
Equity or equity is the total value of the participation of all shareholders in the company . In other words , equity is the value or the assets of the company after deducting all of its liabilities.
Paid – Up Capital / Paid-in Capital
Paid-in Capital , representing the ownership of each shareholder in the company .
Or also Premium , or Additional Paid -In Capital , is a shareholder of the amount paid above the nominal value of shares ( par value) . Over the nominal value of shares above can happen during the IPO or rights issue .
Retained Earnings / Retained Earnings
Retained earnings are heading accumulated retained earnings from year to year . The larger the company’s profit , the greater the profit the arrest . In the balance sheet , retained earnings are recorded net of cash dividends .
Stock Treasury / Treasury Shares
Treasury Stock is recorded based on historical cost and reduce the value of equity . The company can sell the shares in the treasury , but not included in the calculation of profit and loss .